Assume that MTA Sandwiches sells sandwiches for $3.40 each. The cost of each sandwich follows. Materials Labor Variable overhead Fixed overhead ($20,330 per month, 21,400 units per month) Total costs per sandwich $0.90 0.30 e.se 0.95 $ 2.65 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.45 each for a fund- raising event sponsored by a social club at the local college, MTA has capacity to fill it without affecting total fixed costs for the month MTAs general manager was concerned about seling the sandwiches below the cost of $265 and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 300 sandwiches In addition to the regular production and sales of 21.400 sandwiches per month b. Based solely on the data given, what is the lowest price per sandwich at which the special order can be filled without reducing MTAS profits? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule to show the impact on MTA's profits of providing 300 sandwiches in addition to the regular production and sales of 21,400 sandwiches per month. (Select option "higher" or "lower, keeping Status Quo as the base. Select "none" there is no effect.) Status Quo 21,400 Units Alternative 21,700 Units Difference higher Sales revenue Less variable costs Materials Labor Variable overhead Total variable cost Contribution margin Less: Fixed costs Operating profit $ 0 0 $ higher higher higher higher higher none higher lololololo Required B > Assume that MTA Sandwiches sells sandwiches for $3.40 each. The cost of each sandwich follows. Materials Labor Variable overhead Fixed overhead ($20,330 per month, 21,400 units per month) Total costs per sandwich $0.99 0.30 9.50 0.95 $ 2.65 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $245 each for a fund- raising event sponsored by a social club at the local college. MTA has capacity to fill it without affecting total fixed costs for the month. MTAs general manager was concerned about selling the sandwiches below the cost of $265 and has asked for your advice. Required: a. Prepare a schedule to show the impact on MtA's profits of providing 300 sandwiches In addition to the regular production and sales of 21,400 sandwiches per month b. Based solely on the data given, what is the lowest price per sandwich at which the special order can be filled without reducing MTA's profits? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Based solely on the data given, what is the lowest price per sandwich at which the special order can be filled without reducing MTA's profits? (Enter your answer to 2 decimal places.) Lowest price per sandwich
